Certification programs could launch as early as September at Saint Augustine's University, the school's attorney, Ciara Rogers, told a bankruptcy court Tuesday.
However, Judge David Warren said the university has not provided a comprehensive plan quickly enough.
Other WRAL Top Stories
“Time is crucial,” Warren said during the hearing.
The university announced plans to offer certification programs after filing for Chapter 11 bankruptcy protection in April. The school also ended its fight to retain accreditation.
Warren said he believes the courses are related to artificial intelligence.
Rogers said the historically Black university has developed as many as seven courses for the certification programs.
She said enrollment is open but could not say how many students have enrolled or how much revenue the programs could generate.
Bankruptcy Administrator Brian Behr said he does not believe the new programs will generate enough money for the university to repay all its debt.
Warren said he wants to see a cost-benefit analysis.
“I’ve got some concerns about it,” Warren said. “I don’t know if we’re there yet; I’m not sure this is the right direction for the school.”
Financial stability
Behr said he wants to ensure students receive what they pay for.
“My major concern: Is it something when someone buys, they’re going to get the whole program?” he said.
Rogers said St. Aug's is working to hire an accountant as part of its effort to bring its audits and tax returns up to date.
Warren said the school's “burn rate” is $300,000 per month.
“That’s a lot of money,” he said.
Self-Help Ventures Fund is currently lending the university money.
“What’s Self-Help’s tolerance for this rate of … expense?” Warren asked.
Self-Help attorney Paul Fanning said the organization supports St. Aug's but wants to ensure all its expenses are necessary.
“The burn rate is somewhat alarming,” Fanning told the court. “There are some expenses that Self-Help wants clarity on.”
Pending litigation
On Monday, the university asked the court to pause Christine McPhail's lawsuit against former board members James Perry and Brian Boulware.
In the lawsuit, McPhail alleged that Perry and Boulware fostered an environment of sexual discrimination against female board members and employees of Saint Augustine's University.
The former university president died earlier this year after battling cancer, but her estate is continuing the lawsuit.
In its new filing, the university argues that both board members were essentially extensions of St. Aug's. As a result, the school says it would have to spend additional money participating in the litigation at a time when it should be focused on restructuring through bankruptcy.
The court is expected to consider the matter later this month.